The Canadian dollar declined today against its U.S. counterpart for the fourth straight day as the oil prices continued to fall globally.
Following the expiration of the January crude oil futures the price has briefly went up but then continued to decline as the traders expect that the demand will shrink faster than the OPEC cuts its real output. Canada isnt a member of OPEC but the oil constitutes about 10 percent of its exports.
The Canadian dollar, which is also known as loonie, lost almost 24 percent this year with the large portion of losses contributing to the nearly 70 percent oil slump since September. The Canadas government said earlier that the countrys economy, which is currently worlds 8th largest, will probably contract in 2009 for the first time since 1991.
USD/CAD rose from 1.2209 to 1.2240 as of 9:19 GMT today — the volatility is still at a very low level because the Japanese banks are not participating in the trades today due to the national holiday.
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